‍

Reports of entertainment’s demise are rife right now but the music industry, which has already made its transition to streaming and subscriptions, continues to rise.

According to the Recording Industry Association of America (RIAA)’s mid-year revenue report, music revenues are up 4% to a record $8.7 billion in estimated value over the first half of the year. Music streaming subscriptions increased 3% to 99 million subscribers and rose to $5.7 billion, representing nearly two-thirds of total recorded-music revenues in the first half of 2024. Music revenues in the U.S. have grown each year since 2016, although last year they were up 8% compared to this year’s 4% thus far.

“This report marks a landmark moment in recorded music with revenues hitting a record $8.7 billion for the first half of 2024 as the music ecosystem continues to grow and evolve to deliver for even more fans. Spanning multiple licensing avenues from fitness apps to short-form video, artists and labels are embracing innovation with responsible partners so more Americans can engage with their favorite music however, whenever and wherever they choose,” said RIAA Chairman & CEO Mitch Glazier in a statement. “This sustained growth fuels innovation and reflects music’s incredible value, laying the foundation for a healthy creative ecosystem where artists’ and songwriters’ visions can flourish over generations.”

While music is growing, it hasn’t been immune to industry-wide layoffs and a leveling off of subscriber growth to services such as Spotify, YouTube Music and Apple Music. Thus far in 2024, subscription services have added 2.5 million new accounts, compared to 6.5 million in 2023 and 8 million in 2021 and 2022.

Sales of vinyl records, which have made a comeback in recent years, increased 17% to $740 million. In contrast, revenues from CDs remained relatively flat at $237 million. Vinyl has outsold CDs for four straight years, accounting for three-quarters of physical format revenues in the first half of 2024. In total, sales of physical media increased 13% compared to 2023 to hit nearly $1 billion, the report said.

As it has across all of entertainment, advertising growth slowed, gaining only 2% to nearly $900 million and contributing 10% of total recorded-music revenues. 

Digital and customized radio, including such services as SiriusXM and internet radio stations, notched 2% growth to $672 million.

The report does not include revenue generated by live music performances.

‍